>> PREFERRED EQUITY/MEZZANINE DEBT CRITERIA

Property Types:	Primarily office, retail, industrial/flex and multi-family.

Investment Size:	$1 million to $8 million of equity per transaction. The "sweet spot" is $5 million of equity.

Geographic Areas:	Primarily in the metropolitan areas of the western United States, specifically including WA, OR, CA, ID, NV, AZ, UT, and CO.

Investment Term:	Generally 3-7 years, depending on overall transaction structure, risk levels, and project needs. Bridge loans may sometimes leave shorter durations.

Pricing:	8-12% current pay, (interest only) on preferred equity and mezzanine debt with fixed-rate and floating rate options are available. Overall returns will be determined through a combination of current pay, preferred return, origination/exit fees, and cash flow/back-end participation, depending on the transaction.

Non-Recourse:	Typically non-recourse except for standard carve-outs.

Investment Types:	Property Acquisition Development/Redevelopment Leasing Cost Contributions (TI's and commissions) Refinancing Recapitalization/Repositioning Acquiring Partnership Interests Partial and Whole Loan Acquisition Unlocking equity trapped by low-leverage senior mortgages

Investment Structures:	Will consider all types of transaction structures, including direct equity investments, preferred equity, B Notes, mezzanine debt and any combination thereof.

Security:	Preferred equity investments will be secured by direct partnership interests and will provide a preferential return of cash flow and/or participation in property residual proceeds Mezzanine loans will be secured by a pledge and assignment of equity interests in the borrowing entity and/or a junior deed of trust on the property, subordinated to any senior debt. Intercreditor agreements will be required providing for standard mezzanine lender controls.